July 26, 2010 10:06 AM

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The Government has agreed to enhance the pay structure of Regional Rural Banks, RRBs employees which will be at par with that of commercial banks. Briefing media after his meeting with the Chairmen of RRBs in New Delhi on Sunday, Finance Minister, Pranab Mukherjee said that the arrears will put an additional burden of 791 crore Rupees on these banks. Mr. Mukherjee also asked the RRBs to bring their Non Performing Assets below 5 percent by the year end. He called on the sponsored banks to help the RRBs in their effforts to expand the number of branches to 2000 by the end of this fiscal year. Mr. Mukherjee also emphasized on use of new technology including Business Correspondents, mobile banking vans and tele-banking to provide banking services to the rural population. In reply to a query on food inflation, he admitted that it is a matter of concern and said that it will moderate at the end of the kharif season.

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